NewsGuild-backed bill providing tax credits to California newsrooms becomes law

California Governor Gavin Newsom just signed a bill into law that will create tax credits to support journalism jobs in the state. Newsom supported the Community NEWS Act after local and international outreach from the Guild and a coalition led by Rebuild Local News.  

Local Guild leaders pressed Newsom to sign the legislation earlier this month. 

The law creates job retention credits of up to $20,000 each year for every employed journalist and creates a $15,000 credit for every new journalist hired. Part-time journalist positions are supported with $7,500 credits.

“This is one of the largest investments a state has made into actual working journalists. In tying dollars to the number of people doing the work of journalism, California can help remedy the decline of local news,” said Annie Sciacca, president of the Pacific Media Workers Guild, NewsGuild-CWA Local 39521. “We cannot do the work of journalism without journalists.”

“This is a much-needed lifeline for newsrooms across California, where waves of drastic cuts have threatened the vital role of journalists within local communities,” said Media Guild of the West President Sean Emery. “By providing a financial incentive to not only maintain but also grow newsroom staffing, the bill will help ensure that our dedicated journalists are providing Californians the in-depth coverage they deserve.”

“I’m proud that my old home state of California will actively support journalism jobs,” said NewsGuild-CWA President Jon Schleuss. “Journalism is facing an extinction-level event and the only way to reverse course is to create tax credits to support journalism jobs. This law is a model for every other state and the federal government.”

The new law follows similar legislation passed by New York and Illinois two years ago. 

The United States has lost more than 80% of its local journalists since 2002. Back then, the U.S. had about 40 local journalists for every 100,000 residents. Today that number has fallen to just 7.8, leaving many communities without reliable sources of information.